Volume 15 Third Supplement

Publication Date: Jul 2001

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DIGEST OF CASES REPORTED

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Decision No.

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PENALTY TAX

failure to report chargeability without reasonable excuse - grossly understated assessable profits in tax return for several years of assessment - no evidence of absence of intention to evade tax - duty on taxpayer to notify IRD of his chargeability - no duty on IRD to issue Form IRC 6121 - absence of Form IRC 6121 is no licence nor reasonable excuse for failing to notify IRD of a taxpayer's chargeability - penalty in the rate of 100% of the tax undercharged - ss 51 and 82A of Inland Revenue Ordinance ('IRO')

real property - whether the gains arising from the disposal of properties were liable for profits tax - s 68(4) of the Inland Revenue Ordinance ('IRO')

D129/00

starting point - record of the taxpayer in preceding years - delay in submitting return

D89/00

PROFITS TAX

acquisition and sale of property - intention at time of purchase - burden of proof on purchaser to establish that property purchased for long term investment - whether tax chargeable upon profits derived from sale of property - what is an allowable deduction upon sale of property - ss 16(1) and 17 of the Inland Revenue Ordinance ('IRO')

D118/00

acquisition and sale of property - intention of purchaser at time of acquisition - burden of proof on purchaser - whether tax chargeable on the profits of sale - s 68(4) of the Inland Revenue Ordinance ('IRO')

D111/00

additional tax - deductibility - fees paid to a consultancy company by a barrister - ss 61, 68(4) and 68(9) of the Inland Revenue Ordinance ('IRO')

D107/00

real property - whether the gains arising from the disposal of properties were liable for profits tax

D93/00

sale of property - whether profits derived from the sale of the property assessable to profits tax - intention at the time of acquisition - change of the intention of purchase - ability to carry out intention - onus of proof - s 68(4) of the Inland Revenue Ordinance ('IRO') - application to re-open hearing - finality to evidence - accounting treatment - whether purchase and sale of the subject property within short time span and sale as cofirmor indicative of trading intention

D112/00

understatement of income - whether sufficient business record - s 51C of the Inland Revenue Ordinance

D50/00

whether profits from the sale of a property assessable to profits tax - whether the sale of a property was a sale of capital asset or trading stock - testing the taxpayers' assertion against the surrounding circumstances - s 68(4) of the Inland Revenue Ordinance ('IRO')

whether taxpayer entitled to claim deductions for expenses allegedly incurred in the course of the employment - whether 'prevented' from giving the requisite notice of appeal - s 66(1) of the Inland Revenue Ordinance ('IRO')

D98/00

Note: The latest position of unsettled appeals is shown in either (a) Table of Appeals to Court of First Instance or (b) Table of Appeals to Court of Appeal/Court of Final Appeal. When the final outcome of an appeal is known, the position is set out in either table and will disappear in the next issue of Board of Review Decisions.

To view "Table of Appeals to Court of First Instance/Court of Appeal/Court of Final Appeal" (position as at 31.5.2001), please click here.